Legal Question in Real Estate Law in New York

Re: Coop apartment

I don't understand the question. Are you talking about a mortgage for the building or a mortgage for the purchase?

Mike.

Re: Coop apartment

The question is a little confusing,as Mike indicates. Which mortgage are you talking about, yours or the coops? Presuming you are asking if it is proper to buy for all cash, rather than have a mortgage, that depends upon economics. Mortgage interest is a tax deduction, that reduces your taxable income, thus you pay less taxes. However, you are still paying interest and the principal, so you are laying out cash. Quick illustration: Mortgage inrterest rate of 6%, and 30% tax bracket. Effective mortgage rate is 4.2% (6% reduced by tax rate). If you can earn more than 4.2% on your investments, the mortgage is advantageous; if not, paying all cash is better. This is a response to an Internet question and the reply is not intended to be legal advice or create an attorney-client relationship.